New tax band could help lift 20,000 children out of poverty, says think tank

Humza Yousaf’s proposal for a new tax band could raise enough money to lift 20,000 children out of poverty, a think tank has said.

The IPPR’s analysis said thousands of families could benefit if the money went towards increasing the Scottish Child Payment.

During the SNP leadership campaign, Mr Yousaf proposed a new tax band for those earning more than £43,662.

The IPPR modelled a similar proposal and found it generated an additional £257 million for the public purse.

The think tank said this would be enough to fund increasing the Scottish Child Payment to £40 per week, which could lift 20,000 children out of poverty.

So far 40,000 children are thought to have benefitted from the new social security payment.

IPPR Scotland director, Philip Whyte, said: “Lifting 60,000 children in Scotland out of poverty is not only morally right but it would also ensure Scotland meets its interim child poverty target in the coming year and set a clearer path towards our final targets in 2030.

“But political will, investment and action is needed.

“While we won’t be able to see any change to tax rates until the next budget, this shows what is possible – but it also shouldn’t stand in the way of moving quickly where we can now, including further increases for the Scottish Child Payment.

“The evidence is clear: Going further on progressive taxes in Scotland can loosen the grip of child poverty.

“Humza Yousaf made ambitious proposals to tackle child poverty in his leadership pitch – he must now deliver them in government.”